Coronavirus Large Business Interruption Loan Scheme

The Scheme is designed to support mid-sized and larger UK businesses who are suffering disruption to their cashflow due to lost or deferred revenues during the coronavirus outbreak. The Scheme provides the lender with a Government-backed partial guarantee (80%) against the outstanding facility balance, but the borrower remains liable for 100% of the outstanding debt.

The Scheme was made available to businesses providing they, or other members of their Group, have not received a facility under the Bank of England's Covid Corporate Financing Facility (CCFF), the Bounce Back Loan Scheme (BBLS), or the Coronavirus Business Interruption Loan Scheme (CBILS) and will not seek to apply whilst the Scheme Facility is outstanding.

UK-based businesses with Group turnover of more than £45 million per annum. The business had to confirm they had been impacted by coronavirus and be considered a viable business.

Businesses with private equity investors were eligible for support.

Almost all businesses with a minimum turnover of £45m could access CLBILS  but the relevant borrower could not be:

• A credit institution or insurance company;
• An individual other than a sole trader or a partner acting on behalf of a partnership;
• Classified as public sector by the Office of National Statistics; or
• A state funded primary or secondary school.

CLBILS was used to support our customers with new Term Loans and Revolving Credit Facilities.

Customers who held existing Club or Syndicated loans were able to discuss additional borrowing requirements with their Relationship Director who had access to specialist support.

We provided CLBILS to support loans and RCFs for amounts up to £200 million for businesses with more than £45 million Group annual turnover.

The amount of the loan was based upon the borrower’s liquidity needs for the following 12 months.

We provided CLBILS to support loans and RCFs for amounts up to £200 million for businesses with more than £45 million Group annual turnover.

The amount of the loan was based upon the borrower’s liquidity needs for the following 12 months.

Term Loans were provided under this Scheme for a period of between 3 months and up to 3 years. The repayment schedule was agreed dependent upon individual circumstances. Any outstanding loan balance would be repaid in full upon expiry of the facility. Revolving Credit Facilities provided under this Scheme were available for a period of between 12 months and up to 3 years. Repayment was required upon maturity of the facility.

Interest remained payable as it fell due throughout the life of each facility.

CLBILS facilities were  documented via market standard documentation which may have incorporated financial covenants and information undertakings. Certain restrictions applied  on dividend payments / distributions for loans and RCFs of up to £50 million during the term of the facility. Additional restrictions  applied for loans and RCFs over £50 million.  CLBILS facilities could  not be subordinated to any other senior obligations of the Borrower. If security was provided to support existing senior lending facilities, CLBILS facilities also benefitted from this security on a pari passu basis (specific carve-outs for certain security in relation to residential development financing, asset finance and invoice finance however applied).

Additional security may have been required in support of CLBILS facilities.

The Coranavirus Large Business Interruption Scheme closed to new applications on 31 March 2021.